LONDON (BRAIN) — Global private equity firm Rhône announced Wednesday it will make a "significant" equity investment in Wahoo Fitness. The transaction is expected to be completed in the third quarter. Additional financial terms were not disclosed.
As part of the transaction, Wahoo founder and Chairman Chip Hawkins and the management team also will make reinvestments. The company's current private equity investor, Norwest Equity Partners, continues to hold a minority investment. Norwest invested in 2018.
Rhône, which focuses on investments in business with a transatlantic presence, said its investment will capitalize on the increased emphasis on health and wellness, cycling's growing popularity, and an increased adoption of digitally-driven home training tools. Through its international network and experience in retail distribution, Rhône can support Wahoo's plans to continue the expansion of distribution channels globally and grow its full suite of products.
"We are proud to partner with Chip, (Chief Executive Officer Mike Saturnia), and the rest of the Wahoo team in their plans to grow the business during this dynamic and exciting time for the connected fitness industry," said Robert Agostinelli, Rhône co-founder and managing director. "In addition to Wahoo's strong leadership team, we are impressed by the unmatched quality and breadth of Wahoo's brand and product innovation capabilities and its loyal, passionate customer following."
Wahoo, founded in 2009 and based in Atlanta, has developed a series of connected-fitness products, software, and training content focused on endurance athletes. Products include KICKR smart indoor cycling equipment, ELEMNT cycling computers and GPS watches, and TICKR heart-rate monitors.
The company also expanded its offering through product acquisitions, including the Speedplay pedal company and The Sufferfest (SUF) training software.
"Rhône's investment marks an exciting new chapter for Wahoo," Hawkins said. "Rhône has a remarkable track record in partnering with founder-led companies to evolve and strengthen their businesses. I believe Rhône will be a great partner as we continue our global expansion, broaden our portfolio, and leverage the power of technology to transform the way people train and reach their fitness goals."
